Finance - Which to pay first?

mosesbotbol · 11-07-2019, 08:29 AM

I have two loans that I pay additional principal on each month; home and car?

Both are at similar interest rates (the car could be a little lower %). Is there one I should focus the additional money I can pay towards principal first? First thought is the home since the terms are longer, but it would also be nice to have the car paid off sooner. Then again the car loses value each month too.

Some months the additional I would pay on the car just goes to the lender's bank and sits in a savings account I had to open (credit union). I figure if there is a major service I have money or I could eventually use that money in their savings account to pay off the loan.

Is there any consensus on which to focus on or just pay some extra on both as I have been doing?

11-07-2019, 08:29 AM	#1
mosesbotbol That's a Corgi Join Date: Oct 2008 First Name: Moses Location: Boston Posts: 6,171 Trading: (6)	Finance - Which to pay first? I have two loans that I pay additional principal on each month; home and car? Both are at similar interest rates (the car could be a little lower %). Is there one I should focus the additional money I can pay towards principal first? First thought is the home since the terms are longer, but it would also be nice to have the car paid off sooner. Then again the car loses value each month too. Some months the additional I would pay on the car just goes to the lender's bank and sits in a savings account I had to open (credit union). I figure if there is a major service I have money or I could eventually use that money in their savings account to pay off the loan. Is there any consensus on which to focus on or just pay some extra on both as I have been doing? __________________ Port Wine & Claret \| British Cars \| Welsh Corgi's